THỊ TRƯỜNG TÀI CHÍNH

CHUONG 2.MONEY MARKET

1. Which of the following transactions would not be considered a secondary market transaction?
a. An individual investor purchases some existing shares of stock in IBM through his broker.
b. An institutional investor sells some Disney stock through its broker.
c. A firm that was privately held engages in an offering of stock to the public.
d. All of the above are secondary market transactions.
2. ____ concentrate on mortgage loans.
a. Savings institutions
b. Credit unions
c. Commercial banks
d. Finance companies
3. Commercial paper is
a. a loan to an individual or business to purchase a home, land, or other real property.
b. short-term funds transferred between financial institutions usually for no more than one day.
c. a time draft payable to a seller of goods, with payment guaranteed by a bank.
d. a short-term unsecured promissory note issued by a company to raise funds for a short time period.
4. Which of the following is not considered a money market security?
a. commercial paper
b. banker's acceptance
c. Treasury notes
d. Treasury bills
5. If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve
____ returns, and they are exposed to relatively ____ risk.
a. higher; lower
b. lower; higher
c. higher; higher
d. lower; lower
6. Which of the following are not considered depository financial institutions?
a. savings institutions
b. credit unions
c. finance companies
d. commercial banks
7. A negotiable CD is
a. a marketable bank-issued time deposit that specifies the interest rate earned and a fixed maturity date.
b. a loan to an individual or business to purchase a home, land, or other real property.
c. a short-term fund transferred between financial institutions usually for no more than one day.
d. a time draft payable to a seller of goods, with payment guaranteed by a bank.
8. Which of the following is/are money market instrument(s)?
a. T-bonds
b. 4-year maturity corporate bond
c. Negotiable CDs
d. Common stock
9. Which of the following is a nondepository financial institution?
a. savings banks
b. commercial banks
c. savings and loan associations
d. mutual funds
10. There is a ____ relationship between the risk of a security and the expected return from investing in the
security.
a. positive
b. indeterminable
c. negative
d. none of the above
CHƯƠNG 4: STOCK
1.The first-time issuance of shares by a specific firm to the public is referred to as a(n)
a.stock repurchase.
b.initial public offering (IPO).
c.secondary stock offering.
d.initial rights issue.
2. A firm can best avoid the time lag between registering new securities with the SEC and actually selling them by
a.use of proxy.
b.use of a margin call.
c.shelf-registration.
d.use of preemptive rights.
3. Which of the following is false with respect to initial public offerings (IPOs)?
a.IPOs are typically intended to raise funds so the corporation can expand.
b.IPOs are first-time offerings of shares by a specific firm to the public.
c.Owners of firms that engage in IPOs are normally required to retain their shares for at least 3 years before selling them
in the secondary market.
d.Normally, a firm planning an IPO will hire a securities firm to recommend the amount of stock to issue and the asking
price for the stock.
4. According to the strong form of efficient market hypothesis:
a.Using past price and volume information one can earn abnormally high returns from stocks.
b.Financial statement analysis can be used to earn abnormally high returns from stocks
c.Using insider information one can earn abnormally high returns from stocks.
d.Private information is of no help in earning abnormally high returns.
5. When a corporation makes a secondary offering, it may direct sales of the stock to its existing shareholders by giving
them:
a.preemptive rights.
b.subscription rights.
c.limit orders.
d.presumptive rights.
6.In a ________ the firm preregisters with the SEC any securities it wishes to sell over the next 2years.
a.best efforts
b.rights
c.full underwritten
d.shelf registration
7. The process by which the lead underwriter solicits indications of interest by institutional investors in an IPO at various
possible ____ prices is referred to as ____.
a.IPO; bookbuilding
b.IPO; margin selling
c.offer; bookbuilding
d.offer; secondary market building
8. Which of the following statements is incorrect?
a.Stocks are issued by corporations to raise short-term funds.
b.A stock is a certificate representing partial ownership in a corporation.
c.Like debt securities, common stock is issued by firms to obtain funds.
d.The secondary stock market enables investors to sell stocks that they had previously purchased.
9. Suppose a firm has 10 million shares of common stock outstanding and seven candidates are up for election to three
seats on the board of directors. If the firm uses cumulative voting to elect its board, what is the minimum number of
votes needed to ensure election to the board?
a.4,285,715
b.3,000,000
c.5,000,000
d.7,500,001
10.The largest single type of holder of common stock ($) is
a.brokers and dealers. b.pension funds.
c.households. d.mutual funds.
CHƯƠNG 5: MORTGATE MARKETS
1.A ________ placed against mortgaged property ensures that the property cannot be sold (except by the lender) until
the mortgage is paid off.
a.lien
b.collateral
c.property license
d.red book
e.down payment
2.A financial institution has a higher degree of interest rate risk on a ____ than a ____.
a.30-year variable-rate mortgage; 30-year fixed-rate mortgage
b.15-year fixed-rate mortgage; 30-year fixed-rate mortgage
c.15-year variable-rate mortgage; 15-year fixed-rate mortgage
d.30-year fixed-rate mortgage; 15-year fixed-rate mortgage
3.A mortgage that requires interest payments for a three- to five-year period, then full payment of principal, is a(n)
a.balloon payment mortgage.
b.chattel mortgage.
c.open-ended mortgage bond.
d.variable-rate mortgage.
4.The schedule showing how monthly mortgage payments are split into principal and interest is called a(n)
a.balloon payment schedule.
b.graduated payment schedule.
c.amortization schedule.
d.securitization schedule.
5.For any given interest rate, the shorter the life of the mortgage, the ____ the monthly payment and the ____ the total
payments over the life of the mortgage.
a.lower; greater
b.lower; lower
c.greater; greater
d.greater; loơer
6.From the perspective of the lending financial institution, interest rate risk is
a.lower on a 30-year fixed-rate mortgage than on a 15-year fixed-rate mortgage.
b.higher on a 15-year adjustable-rate mortgage than on a 30-year adjustable-rate mortgage.
c.lower on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
d.higher on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
7.In a collateralized mortgage obligation (CMO), mortgages are segmented into ____ (or classes).
a.strips
b.balloon payments
c.caps
d.tranches
8.In an amortization schedule of monthly mortgage payments
a. no correct choice
b. the amount of interest in each payment is equal to the principal paid.
c. principal payments exceed interest payments early on.
d. interest payments exceed principal payments early on
9.For any given interest rate, the shorter the life of the mortgage, the ____ the monthly payment and the ____ the total
payments over the life of the mortgage.
a. lower; greater
b. greater; lower
c. lower; lower
d. greater; greater
10.The process of packaging and/or selling mortgages that are then used to back publicly traded debt securities is called
a. collateralization.
b. stock diversification.
c. securitization.
d. market capitalization.
11.Use an amortization schedule. A 15-year $100,000 mortgage has a fixed mortgage rate of 9 percent. In the first
month, the total mortgage payment is $____, and $____ of this amount represents payment of interest.
a. 1,241; 750
b. 1,241; 264
c. 1,014; 750
d. 1,014; 264

CHUONG 6 : DERIVATIVES MARKETS

1. Assume an insurance company purchases a call option on an S&P 500 Index futures contract for a premium of 14, with
an exercise price of 1800. The value of an S&P 500 futures contract is 250 times the index. If the index on the futures
contract increases to 1830, what is the gain on the sale of the futures contract?
a.$7,500
b.$3,300
c.$4,000
d.$15,000
2. Investor sells a futures contract an asset when the futures price is $1,500.Each contract is on 100 units of the asset.The
contract is closed out when the futures price is $1,540.Which of the following is true
a.The investor has made a loss of $4,000
b.The investor has made a gain of $2,000
c.The investor has made a gain of $4,000
d.The investor has made a loss of $2,000
3. A company can invest funds for five years at LIBOR minus 30 basis points. The five-year swap rate is 3%. What fixed
rate of interest can the company earn by using the swap?
a.2.7% b.3.0%
c.2.4% d.3.3%
4. A U.S. investor has borrowed pounds, converted them to dollars, and invested the dollars in the United States to take
advantage of interest rate differentials. To cover the currency risk, the investor should:
a.sell pounds spot.
b.buy pounds forward.
c.buy dollars forward.
d.sell pounds forward.
5. Which of the following instruments are contracts but are not securities
a.options or swaps
b.stocks and swaps
c.options and swaps
d.stocks and options
6. A speculator purchased a put option with an exercise price of $56 for a premium of $10. The option was exercised a
few days later when the stock price was $44. What was the return to the speculator?
a.-20 percent
b.120 percent
c.20 percent
d.-100 percent
7. An interest rate swap agreement indicates the ____ value, which represents the principal amount to which interest
rates are applied to determine the interest payments involved.
a.programmed
b.vanilla
c.notional
d.LIBOR
8. A ____ grants the owner the right to purchase a specified financial instrument for a specified price within a specified
period of time.
a.put option
b.purchase of a futures contract
c.call option
d.sale of a futures contract
9. The current level of the S&P 500 is 1,250. The dividend yield on the S&P 500 is 3%. The risk-free interest rate is 6%. The
futures price quote for a contract on the S&P 500 due to expire 6 months from now should be ________.
a.1,268.61
b.1,291.29
c.1,274.33
d.1,286.95
10. Which of the following is true for an interest rate swap?
a.A swap is usually worth close to zero when it is first negotiated
b.Each forward rate agreement underlying a swap is worth close to zero when the swap is first entered into
c.None of the above
d.Comparative advantage is a valid reason for entering into the swap

CHAPTER7 FOREIGN EXCHANGE MARKETS

Câu hỏi 1 A______home currency can domestic inflation.

A. strong; increase
B.weak; decrease
C. strong; decrease
D. A and B
Câu hỏi 2; Generally, a _____ home currency can _____domestic economic growth.
A. strong; stimulate
B. strong; dampen
C. weak; dampen
D. A and B
Câu hỏi 3: A U.S. investor has borrowed pounds, converted them to dollars, and invested the dollars in the United States
to take advantage of interest rate differentials. To cover the currency risk, the investor should
A. buy dollars forward.
B. sell pounds spot.
C. buy pounds forward.
D. sell pounds forward.
Câu hỏi 4: An investor starts with $1 million and converts it to 0.75 million pounds, which is then invested for one year. In
a year the investor has 0.7795 million pounds, which she then converts to dollars at an exchange rate of 0.72 pounds per
dollar. The U.S. dollar annual rate of return earned was ______
A. 7.69 percent
B. 5.27 percent
C. 6.45 percent
D. 8.26 percent
Câu hỏi 5 A ______current account deficit implies that
A. the value of the dollar will rise.
B. more goods and services are imported than are exported.
C. there is excessive consumption of foreign financial assets.
D. more goods and services are exported than are imported.
Câu hỏi 6 The value of the Euro changed from $1.15 to $1.25. We can say that the dollar has____and the euro has
A. depreciated; depreciated
B. depreciated; appreciated
C.appreciated; depreciated
D. appreciated; appreciated
Câu hỏi 7 Which of the following is most likely to provide currency forward contracts to their customers?
A. insurance companies
B. international mutual funds
C. commercial banks
D. brokerage firms
Câu hỏi 8 Currency futures contracts differ from forward contracts in that they
A. are not an obligation.
B. can specify any amount and maturity date.
C. are an obligation.
D. are standardized.
Câu hỏi 9 A U.S. bank has £120 million in loans to corporate customers and has £70 million in deposits it owes to
customers with the same maturity. The bank has also sold £20 million pounds forward. The bank's net exposure is
A.£30 million.
B. £170 million.
C. £210 million.
D. £70 million.
Câu hỏi 10: If the U.S. government imposed trade restrictions on U.S. imports, this would ______ the U.S. demand for
foreign currencies, and would place_____ pressure on the values of foreign currencies (with respect to the dollar).
A. limit; upward
B.increase; upward
C. increase, downward
D.limit; downward